State of Local Manufacturing

State of Local
Manufacturing
October 2013
A NYCEDC
Special Report
CONTENTS
Introduction
Within the last several years, federal and local discourse on job creation has increasingly focused on
“manufacturing”. This is, in part, because the sector is known for providing “good” entry-level jobs, those
with both relatively high pay and upward mobility. Most discussions on bringing back or “on-shoring”
manufacturing jobs fail to contemplate the potential and current role of Cities as manufacturing hubs. This
report, published ahead of National Manufacturing Day on October 4, 2013, aims to ground this broad
conversation in the specific context of New York City.
Although it is widely believed that New York City’s manufacturing sector has disappeared, it in fact, has not.
As documented in the following pages, it has simply changed form. While our City is known for skyscrapers,
behind the closed warehouse doors abundant in manufacturing districts, you can find manufacturers of
chocolate, men’s clothing, home furniture and specialty drinks. To see behind those doors, please refer to
this report’s complementary initiative, NYCrafted, for a multi-media narrative of urban manufacturing in
New York City.
3
Overview
A synopsis of the impetus for this report and an
overview of its findings.
4
Defining Manufacturing
A description and breakdown of what constitutes
manufacturing today.
6
Made in America
An examination of national trends and a comparative
assessment of local trends in manufacturing.
10 Indicators
Illustration of growth trends and statistics in the
following areas:
• Employment
• Land Use and Real Estate
• Investment and Financing
2
OVERVIEW
Context
Over the last decade, New York City’s manufacturing
sector has experienced substantial job loss across nearly
every sub-sector. The total number of manufacturing
jobs has halved, decreasing from over 150,000
manufacturing employees in 2001 to just over 75,000
employees in 2012.
This discrepancy has many potential causes, including
a time lag between data collection and analysis (many
indicators used are most recent as of 2012), and
an inherent inability of tools used to measure other
industries - like IPOs or venture capital investments - to
capture change in a sector comprised of smaller firms.
These trends of decline are not unique to the NYC’s
manufacturing economy. National manufacturing
employment has experienced a similar high-profile
decline over the last decade. From 2002 to 2012, the
U.S. lost 21.7% of total manufacturing jobs. On top
of this extended decline, in 2009, manufacturing in
both NYC and the U.S. saw additional, rapid job loss
as a result of the economic downturn. However, from
2011-2013, the number of manufacturing jobs in NYC
and the U.S. increased, representing a potential end
to the sector’s recent decline. At times, these national
and local trends are driven by the same factors, but at
others, they are not.
As a result of these limitations, this report provides a
snapshot of New York City’s manufacturing sector as
measured only by standard means, with gaps closed
by alternative data sources when possible. The results
highlight the need for further study and substantial
recalibration of measurement tools.
Within this blanket of decline, simmering excitement
among NYC’s manufacturers reveals sub-sector trends
worth examining. For instance, the food manufacturing
sector - the growth of which is documented in this
report - has experienced a resurgence and accounts for
much of the growth in manufacturing establishments
across the five boroughs. But there are also more
nascent trends: tools such as 3D printing and crowd
funding are taking root and demonstrating their
potential to change the face of manufacturing. But
these changes cannot yet be captured quantitatively.
Measuring Manufacturing
This report reveals to its authors that the industrial
classification system has not evolved as quickly as actual
manufacturing, and therefore does not immediately
allow for the identification of new subsectors, such as
digital manufacturing, that appear to be driving the
future of the industry.
Notable Statistics
• In line with National trends, in the last 30 years
New York City’s industrial sector - an umbrella
including manufacturing, distribution and
construction sectors - has shrunk considerably
across all measures.
• In 2012 the industrial sector made up 10.7% of
total gross city product, compared to 14.6% in
1990. But industrial output decreased as a share
of the NYC’s total economy by less than its share
of employment, revealing increased ouput per
worker.
• As of August 2013, NYC’s industrial businesses
accounted for 13.5% percent of NYC’s private
employment. Manufacturing businesses account
for around 2.2%, or 75,000, of these jobs.
• Industrial occupations provide a range of
salaries—including an approximate annual
average wage of $36,000 for production
occupations and $88,000 for supervisors of
construction and extraction workers.
Sources: Moody’s DataBuffet, New York State Department of Labor (CES and
QCEW Data)
3
Towards a Definition
According to the standard Federal measurement self-identification. This classification limitation acts as a
system, North American Industry Classification System primary barrier to a thorough assessment of New York
(NAICS), a manufacturing establishment1 is one
City’s evolving manufacturing sector.
“...engaged in the mechanical, physical, or
chemical transformation of materials, substances,
or components into new products.”
The word “manufacturing” largely conjures images
of vast factories and processing plants churning out
automobiles, garments, and metal products from
assembly lines. While this picture of manufacturing
is still representative of industry in some parts of the
United States, for New York City it does not. Though
as costs of real estate and doing business have risen,
many large firms have relocated. A landscape of small
manufacturers and entreprenuers remains.
Image 1. Old Manufacturing
“Manufacturing 2.0”
The profile of manufacturers in the NYC has changed;
once dominated by large-scale plants serving the
U.S. market, New York City’s current manufacturing
sector is built on local demand and an export-worthy
reputation. Small, technology-driven firms leverage
strong ties to industries headquartered in New York
City, such as Theater, Architecture, Design, Fashion
and Advertising. NYC’s manufacturers create costumes
for Broadway shows, wooden frames for art galleries,
specialty food for coffee shops, and custom furniture
or technology installations for the City’s cutting-edge
hospitality industry.
This incredible breadth of new activities that engage
mechanical, physical and chemical means to
transform and produce new products may not be
accurately represented as manufacturing in NAICS.
The inter-disciplinary “Manufacturing 2.0” businesses
growing in shared workspaces and on kitchen tables
are perhaps inherently at odds with our classification
system’s siloed framework and reliance on businesses’
Image 2. New Manufacturing
This is not to suggest that the trends of decline in the
sector are purely a product of information gaps. It is
to illustrate that the gaps in information are a product
of ongoing transformations in manufacturing whose
effects are yet unrealized.
1 In the context of a jobs-focused discussion, it is important to note that these manufacturing establishments either perform work in house or contract with other
manufacturing estamblishments to perform the manufacturing. Thus, not all manufacturing establishments are home to manufacturing jobs
2 It is the experience of the authors that inter-disciplanary firms falling within this definition are classifying themselves otherwise.
4
DEFINING MANUFACTURING
This report divides manufacturing establishments
into 9 clusters comprised of manufacturing’s 21,
three-digit sub-sector NAICS classifications. These
clusters have individual trends that both define and
illuminate the path of the sector as a whole.
Trends Key
Manufacturing Subectors
>5%
Cluster3
~10%
~20%
2012 Percent of total NYC
Manufacturing Sector
by Employment
2002- NYC Employment
2012
Trends in NYC
Where you’ll see it in NYC4
Food & Beverage
Transformation of livestock & plants into products for
consumption, including alcohol and tobacco.
Highest concentration
in Brooklyn
Textile, Apparel & Leather
Production of apparel or materials for apparel,
including weaving, tanning, cutting and sewing
Wood , Paper & Printing
Production of wood products, converting pulp to
paper products & printing, such as newpapers
Concentrated in
Manhattan’s Garment
Center
Commerical Printing concentrated in Manhattan &
Long Island City, Queens
Petroleum, Chemical, Plastic & Mineral
Transforrmation of raw materials such as petroleum,
minerals & rubber into usable products
Concentrated in Brooklyn
Metals & Machinery
Transformation of ore into metal products by way of
refining, smelting, heat treating, assembly et al.
Light concentration in
Long Island City, Queens
Computers & Electronics
Production of computers and electronics or their
components
Highest concentration in
Downtown Manhattan
Transportation Equipment
Production of equipment for transporting people and
goods, including cars, trains and trucks
High concentration in
Queens
Furniture & Related Products
Production of furniture and related articles, including
designand development of such products
Miscellaneous
Production of items such as sports goods and jewelry
that require specialized manufacturing processes
Historically concentrated in
Brooklyn
Found scattered
throughout the five
boroughs
3 Clusters appear in the numerical order of their corresponding NAICS codes
4 Concentrations are based on a combination of sources, including InfoUSA and observations of authors and are provided for reader reference only.
5
MADE IN AMERICA
A Downward Trend with a Recent Upswing
Continuing a downward trajectory that began in
the 1960s, employment in U.S. and New York City
manufacturing sectors have both declined within the
last decade. From 2002 to 2012, the U.S. economy lost
21.7% of total jobs in manufacturing. This decline was
exacerbated in the recession: in 2009, both New York
City and the U.S. manufacturing sectors experienced
significant additional job loss.
has stabilized. This may be a result of a shift to a more
stable manufacturing base, comprised of production
that is less susceptible to off-shoring (this breakdown
is explored in Figure 3), increased efficiencies within
firms, or increase in demand.
Only in the past few years has there been an
upswing in the sector’s trajectory (Figure 2). The U.S.
manufacturing sector has seen year-over-year growth
Beyond the impact of the recession, it appears that over in 2011 and 2012, and, in 2012, NYC’s manufacturing
the last decade manufacturing in the U.S. and the U.S. sector saw its first year of growth in over a decade.
Figure 1: Manufacturing Employment: U.S. and NYC
NYC Manufacturing Employment (1,000s)
US Manufacturing Employment (1,000s)
2002
2007
Source: U.S. Bureau of Labor Statistics, New York State Department of Labor (QCEW Data)
2012
Manufacturing in NYC and the nation have declined in a similar pattern. The most severe drop in manufacturing
jobs occurred during the recession from 2008 to 2009, a year that saw a 14.5% decline citywide and a 11.7%
decline nationally.
6
MADE IN AMERICA
Figure 2: Total Private Employment:
U.S. and NYC
The Average Manufacturing Firm
120
Manufacturing vs. Total Private Employment in NYC, 2001-2012
US Private Employment (millions)
180,000
New York City and U.S. Manufacturers are defined by,
and known for, specific characteristics. Below find a
highlight of these broad themes.
New York City
Small size
Majority have fewer than 10 workers
3,300,000
Manufacturing
0.0
160,000
0.0
Total Private
2002
Manufacturing Employment
3,200,000
2012
140,000
120,000
3,100,000
Source: U.S. Bureau of Labor Statistics
100,000
3,000,000
Comparing total private employment in NYC
and the US, the 2008-2009 recession appears
to have resulted in job losses in both, with
steady employment gains thereafter.
80,000
60,000
2,900,000
40,000
2,800,000
20,000
0
2,700,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Source: NYSDOL, QCEW
Figure 3: U.S. Manufacturing Clusters:
Employment Breakdown, 2012
16.0%
24.4 %
2012
Well-established firms
Total Private Employment
NYC Private Employment (millions)
3.5
60% have operated in NYC > 20 years
Renters
60% lease their space
Family-owned
Almost three-quarters of firms are family-owned
United States
3.5%
Small size
Majority employ fewer than 10 workers
2.9%
12.3%
U.S. share of global manufacturing value has
held steady since 1980 at 22 percent
4.8%
12.3%
Well-established value
13.9%
9.9%
Aging Workforce
The average age of worker is 56
Good Pay
The average hourly wage is $24.47
Source: U.S. Bureau of Labor Statistics
Sources: NYCEDC 1,000 Business Survey; U.S. Census Bureau - County
Business Patterns; U.S. Bureau of Labor Statistics, The Manufacturing
Institute.
7
MADE IN AMERICA
Urban Manufacturing
Figure 4a: Manufacturing Trends in Peer U.S. Metropolitan Areas
3
99
65
Figure 4 (above and right): 10 major U.S. metropolitan areas were selected as points of reference for urban
manufacturing. A comparison of the rate of change in number of manufacturing establishments over a ten
year period reveals that Los Angeles experienced the the most dramatic decline followed by Detroit.
The history of the manufacturing sector in the United
States and in New York City follow similar narratives.
As in the U.S., manufacturing in New York City thrived
due to easily accessible ports via waterfronts, railroad
infrastructure and a steady flow of immigrant labor.
The combination of these three factors played an
important role in making this city and this country
dominant in manufacturing.
smaller establishments.
The products they manufacture have also changed.
Manufacturers in New York City are paying more
attention to consumption patterns and producing
goods with locally sourced products to satisfy recent
consumer appetite for regional, specialty products. This
type of consumer preference is evident in the successs
of “Made In New York” branded products and also in
the food markets that have sprung up across the City,
which source a majority of their products from local
farms and firms.
While New York City still has ports, infrastructure and a
thriving immigrant community, it no longer follows the
single industry model when it comes to manufacturing.
Instead of mass producing one or two goods such
as bottles for soda manufacturers or hardware and As a result, the landscape of manufacturing has
electronics parts, we now see small manufacturers changed significantly. The following pages document
operate lean businesses, with fewer employees and some of these trends.
8
MADE IN AMERICA
Figure 4b: Rate of Change in Number of Manufacturing Establishments in Peer Cities, 2002-2012
Los Angeles-Long Beach-Santa Ana, CA
Miami-Fort Lauderdale-Miami Beach, FL
24,500*
6,000*
1
17,200
6
Prominent Cluster(s)
Prominent Cluster(s)
New York-Northern New Jersey-Long Island, NY-NJ-PA
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
New York City (5 Boroughs)
20,400*
8,700*
2
5,700
7,300*
7
5,500
16,800
Prominent Cluster(s)
Prominent Cluster(s)
5,900
Chicago-Naperville-Joliet, IL-IN-WI
Boston-Cambridge-Quincy, MA-NH
14,900*
3
8
6,200*
4,900
13,100
Prominent Cluster(s)
Prominent Cluster(s)
Houston-Baytown-Sugar Land, TX
Atlanta-Sandy Springs-Marietta, GA
5,000*
6,100*
4
6,000
9
4,600
Prominent (Clusters)
Prominent Cluster(s)
Detroit-Warren-Livonia, MI
Washington-Arlington-Alexandria, DC-VA-MD-WV
2,700*
7,900*
5
10
5,800
2,400
*Charts denote annual rate of change; bookend numbers indicate aggregate
number of manufacturing establishments in 2002 and 2012, respectively.
12
20
07
20
02
20
12
Prominent Cluster(s)
20
07
20
20
02
Prominent (Clusters)
Source: U.S. Census Bureau
9
INDICATORS
NumberofofEmployees
Employees
per Establishment
by Manufacturing
Figure 5: Number
per Manufacturing
Establishment
by Cluster, 2002-2012
Sector
40
Food and Beverage
Textile, Apparel and Leather
35
Wood , Paper and Printing
Petroleum, Chemical, Plastic and Mineral
30
Employees per Establishment
Metal and Machinery
Computer and Electronics
25
Transportation Equipment Manufacturing
Furniture and Related Product
Manufacturing
Miscellaneous Manufacturing
20
All NYC Private
15
All NYC Private
10
5
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Source:
NYSDOL,
QCEW
Source: New
York State
Department of Labor
The average number of employees per establishment has declined in every subsector
cluster, including private sector establishments
Manufacturing in New York City has been contracting
for some time. The number of employees per
establishment has decreased for all manufacturing
clusters since 2002, which is consistent with the
industry’s recent move towards smaller, more niche
firms as opposed to large factories. This is partly due to
the standard pressures on businesses to innovate and
reduce costs to remain competitive. Through adopting
forms of efficiency and technology, firms automation
processes have resulted in fewer workers employed.
But contrary to the trend, the number of employees
increased, not decreased, by just 4%. It is worthwhile
to note that even though the employee numbers have
increased for this cluster, they have done so at a much
lower rate as compared to its establishment increase.
Thus, even when total employment expanded, the
average size of a Food and Beverage manufacturing
establishment shrunk by 8.2% over this period,
illustrating the overall trend towards smaller enterprises
throughout the manufacturing industry. In fact,
The Food and Beverage cluster is both an example every cluster experienced a decline in the number of
and an outlier of this trend. True to trend, the number employees per establishment from 2002 to 2012.
of firms has increased by 14% from 2002 to 2012.
10
INDICATORS
Figure 6: Number of Manufacturing Establishments Across NYC, 2002-2012
Manufacturing Employment and Establishments in NYC, 2001-2012
180,000
12,000
NYC Manufacturing
Employment
Establishments
10,000
Manufacturing Employment
140,000
120,000
8,000
100,000
6,000
80,000
60,000
4,000
40,000
Number of Manufacturing Establishments
160,000
2,000
20,000
0
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Source:
New York State Department of Labor
Source: NYSDOL, QCEW
The steady decline in establishment numbers stabilized in 2006.
As employment across New York City’s manufacturing
industry has declined over the past decade, so too have
the number of individual manufacturing establishments.
However, from 2006 onwards, the average number
of manufacturing establishments stabilized yet the
number of manufacturing employees per manufacturing
establishment decreased.
compared to employment numbers could indicate one
of two things:
• Individual establishments are operating with fewer
employees due to decreased revenues and need for
layoffs or labor outsourcing, or
• Manufacturing businesses are becoming more
innovative, operating more efficiently, and
employing more productive workers
The relative stability in establishment numbers as
Figure 7: Manufacturing Sectors Experiencing Job Growth, 2011-2012
+ 1,041
+ 288
+ 183
Food and
Beverage
Wood, Paper
and Printing
Metal and
Machinery
Source: New York State Department of Labor
+ 88
+ 109
Petroleum, Chemical,
Plastic & Mineral
Miscellaneous
+ denotes number of jobs added
Food manufacturing has experienced the highest growth of all the subsector, with the highest number of
jobs added.
11
INDICATORS
Geographic Distribution
Figure 8: Manufacturing Zoning in NYC, 2013
Manufacturing
districts make
up almost 15%
of New York
City’s land
Zoning
Mixed Use
M1
M2
M3
Major Parks
Source: New York City Department of City Planning (Website and PLUTO Data)
Industrial uses are permitted in the three manufacturing districts - M1-, M1, M3 - according to the
characteristics of their operations. Light manufacturing uses are permitted in all districts. In general, the
more potentially disruptive uses are limited to M3 districts but may also locate in M-1 and M-2 districts if
they comply with the higher performance standards of those districts. The highest concentration of land
permitting heavy industrial uses can be found on the West Shore of Staten Island.
Manufacturing districts determine what type of
economic activity takes place around the City. As
the map shows, there are a variety of manufacturing
districts. Each district tells manufacturers where they
can and cannot go based on performance standards,
regulations on impacts an activity can have on its
surroundings in terms of outputs such as noise
and vibration. These zoning patterns were initially
12
established by the city in 1960 and over time have
been modified to reflect various changes and trends
in land use activity. Between 2002 and January 2012,
a number of rezonings of manufacturing districts took
place that reduced the total acreage of these districts
by 5.2 percent or slightly more than 1,100 acres
citywide. Over 20,000 acres remain manufacturing
districts today.
by Borough
Eastchester
Bronx
Bathgate
BX
$11.72
MN
$30.00
BK
$15.64
Average Rent of
RentalAcross
Space NYC,
QN 2013
$13.49
Industrial
Space
Vacancy:
Rental Trends
Zerega
Hunts Point
nd
Outside
IBZ
In IBZ
outside IBZs*:
43% vs 57%
INDICATORS
Average Rental
price in and
outside IBZs*:
Outside
IBZ
In IBZ
found in and
Industrial Space
$13.5 vs $18.2
SI
$10.51
Outside In IBZ
Port Morris
*:
outside
IBZs
Figure
9:
Industrial
Rental
Rates
by
Borough
by Borough
IBZ
Figure 11: Industrial Rental Vacancy Rates
T otal $14.03
43% vs 57%in Select IBZs
BX
$11.72
Manhattan
MN
$30.00
BK
$15.64
Long Island City
Average Rental
price in and
outside IBZs*:
Steinway
$13.49
QN
Woodside
Outside
IBZ
In IBZ
$13.5 vs $18.2
Queens
$10.51
Rental Space
$14.03
North Brooklyn T otal
found in and Jamaica
Outside In IBZ
outside IBZs*:
Greenpoint/Williamsburg
IBZ
SI
of
e
Maspeth
Brooklyn Navy Yard
43%Rental
vs 57%
Figure 10: Industrial
Trends Inside
East New York
and Outside of IBZs !
.72
00
JFK
!
Queens
Average
Av
erage! Rental
A
Long Island City Outside
!
IBZ
! !
price in and
Flatlands/Fairfield
In IBZ
outside IBZs*:
!
.64
.49
!
!
Brooklyn
$13.5 vs $18.2
.51
!
!
!
!
!
!
Vacancy
IBZ Boundary
.03
Maspeth
!
of
e
!
Outside
IBZ
!
g Island City
72
In IBZ
Rental Space
!
found
in and
!
outside IBZs*:
Queens
43% vs 57%
!
0
!
North
1.25Brooklyn
2.5 Miles !
!!
!
00
!
!
64
!
y
undary
49
51
!
Source: CoStar, August 2013
Greenpoint/Williamsburg
!
!!
!
!
Average
Rentalrates
Outside
!
Figure
11 shows
of vacancies
in industrial spaces and within Industrial Business Zone Boundaries across
IBZ
price
in
and
New York City (as of August 2013). Within IBZ boundaries, industrial space vacancies are concentrated
In IBZand parts of Long Island City, Queens.
outside
IBZs*Brooklyn
:
around
North
Maspeth
Brooklyn
$13.5 vs $18.2
!
!
Manhattan
In
2005,
the Bloomberg Administration designated the One of the main purposes of IBZs is to foster industrial
!
!
Industrial North
Business
Zones (IBZs) to stabilize
industrial sector growth by creating real estate certainty. As of
!
Brooklyn
Brooklyn Navy
Yards
!
areas in! the Bronx, Brooklyn, and Queens. Most the writing of this report, the Industrial Business Zone
Vacancy
recently,0 new
IBZs were
created in Staten Island
and areas in the city boast an average industrial rental space
! Boundary
!! !
0.25 0.5
1Miles
IBZ
!
!!
Queens. These ! designations
foster high-performing rent of $13.50, which is lower than non-IBZ areas. IBZ
!
Greenpoint/Williamsburg
!
!
business districts by creating competitive advantages areas also have lower vacancy rates, signifying a greater
Queens
g Island
City
!
for businesses locating to areas outside of Manhattan. demand for the industrial spaces in IBZs (see Figure 12).
03
!
The
IBZs are supported
Brooklynby tax credits for businesses
!
to relocate within
them, zone-specific planning efforts,
!
and direct business assistance from industrial providers.
!
!
rooklyn Navy Yards
!
Maspeth
!
!
1Miles
!
Vacancy
! Boundary
IBZ
13
INDICATORS
Investment In Sector
Lack of comprehensive data on levels of investments
in the City’s manufacturing sector remains a challenge
for evaluating the sector. The sector lacks data on the
amounts of investments being made through traditional
Figure 12: Permits Granted for Industrial
Uses by Density, 2013
Density of Permits Made
Available for Industrial Uses
!!
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The Bronx
!
!
!
!
!! !
!
!
!
!
!!
!!
Density of
Construction Permits
High
Low
IBZ Boundary
0
.75
1.5 Miles
!!! !
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Queens
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Figure 13: NYCEDC Incentive and Benefit
Recipients by Borough, 2002-2012
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New York City Economic Development Corporation’s
(NYCEDC) incentive programs cover a broad scope of
incentives and benefits for manufacturing businesses.
One of the most frequently used incentives by
manufacturing firms is the Industry Incentive. The
Industry Incentive and Small Industrial Incentive
programs provide companies with real property tax,
MRT and sales tax reductions. Manufacturers can use
this to construct or renovate facilities for their own use.
Brooklyn
!
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loans, venture capital funding and even public sector
or government funding. Therefore, to provide some
quantifiable indicators of financial investments in New
York City’s manufacturing sector, this report took
a broad sweep of existing City financial assistance
programs (public sector/government funding) and
pulled together two examples of the utilization of such
programs by manufacturing companies. The report
also identified where building permits have been pulled
for industrial uses to assess where investment activity is
occurring in the sector. Analysis of both City financial
assistance programs and building permits reveal that
manufacturing companies are taking advantage of the
resources available as can be seen from Figure 11 and
Figure 13 below and Figure 14 on the opposite page.
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Source: New York City Department of Buildings
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This map depicts the density of open construction
permits granted to buildings currently used for
industrial or manufacturing purposes (according to
2013 Department of Finance Records). Existence
of permits demonstrates businesses are investing
in their workspaces, buildings or infrastructure.
Manhattan has the highest concentration of the
permits, but significant numbers of permits also
exist within IBZs. We cannot be certain these
are used toward manufacturing purposes, but
this provides some indication of investment and
potential growth in the industrial sector overall.
14
3
SI
52
16
BX
QNS
BK
45
MAN
Source: NYCEDC
10
Queens and Brooklyn have the highest number of
manufacturing companies receiving incentives or
benefits from NYCEDC programs.
INDICATORS
Figure 14: Financing Awards Facilitated
by Borough, 2007-2012
The New York City Department of Small Business
Services operates eight New York City Business Solutions
Centers in the five boroughs. These centers provide a
set of free services to help businesses start, operate
and expand in New York City. New York City Business
Solutions Industrial and Transportation Centers 2012
performance highlights for assistance to all industrial
sectors include:
12
QNS
35
• Financing: 73 successful financing awards, totaling
over $25 million.
• Recruitment: 189 unique business requests for
recruitment services, resulting in 81 job placements.
• Incentives: 117 incentives requests fielded.
• Navigating Government: 293 issues addressed, or
new technology integrated.
MAN
1
SI
17
BX
BK
42
Source: New York City Department of Small Business Services
For manufacturing companies, NYC Business Solutions Centers facilitated the most financing awards
to businesses in Manhattan and Brooklyn.
Conclusions
In the upcoming years NYC’s manufacturing ecosystem
may continue along current trends: implementing
efficiency, innovation and automation measures in
existing firms and leveraging these advantages to
launch new ones. As demonstrated by the increase
in food manufacturers, other niche subsectors may
grow as the competitive advantages of doing business
in New York City become more apparent to new
entrepreneurs.
pool to draw upon to support integration of these new
forms of technology.
Equally critical for manufacturing firm growth is
ensuring the appropriate infrastructure and resources
are in place. As mentioned earlier, the lack of
information on how much investment is occurring
in the manufacturing sector presents a challenge for
policy-makers in determining where resources are
needed. This data gap presents an opportunity to
The outlook for smaller manufacturers who create further explore the investment needs of these firms.
specialty products looks bright when considering what
the City has to offer them: new technologies housed Ultimately this report found that the manufacturing
in rapid prototyping firms and community-oriented community in New York City has not disappered,
incubators can help launch entrepreneurs, and captive nor is it disappearing. It has evolved and while the
demand in the City’s core sectors such as media and evolution of its progression from old world industry to
technology can result in their first contracts.
new may not yet be entirely over, it is a progression
that has resulted in smaller firms from an employment
As new technologies and capacities become increasingly perspective, but more nimble firms that have become
integrated within firms, other business opportunities responsive to a customer base that is as large and
and job opportunities may also present themselves. unique as New York City.
It is critical for these firms to have a prepared labor
15
This report was authored by
NYCEDC’s Industrial Desk:
Miquela Craytor, Alison Hodgson,
Maisha Lopa and Olivia Sayvetz
Acknowledgments:
We would like to thank the
NYCEDC Economic Research and
Analysis team, the Government
and Community Relations team,
the Management Information
Systems GIS Unit and the
Marketing department for their
valuable input. We would
also like to thank the Industrial
Advisory Council and numerous
Industrial stakeholders for
providing their support and
requests for more data. This
report was conceived out
of these requests. It is our
belief that in order to have
any ability to consider policy
recommendations we need to
have a better understanding of
the state of the manufacturing
sector within NYC. We consider
this report the beginning of
what hopefully will be a longer
effort to identify ways to support
what has, and continues to be, a
critical part of the NYC economy.
About NYCEDC
The New York City Economic Development Corporation ist he City’s primary engine for economic development
charged with leveraging the City’s assets to drive growth, create jobs and improve quality of life. NYCEDC is an
organization dedicated to New York City and its people. We use our expertise to develop, advise, manage and
invest to strengthen businesses and help neighborhoods thrive.
We make the City stronger.